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League of Women Voters of California

LWV California Education Fund Nonpartisan Analysis of

Proposition 212

Limits on Campaign Contributions and Spending. Repeals Gift and Honoraria Limits. Restricts Lobbyists.

Initiative Statute

The Question

Should contributions to candidates' campaigns be limited, should there be a limit on what candidates can spend to get elected, and should the current restrictions limiting gifts and honoraria to officials be removed?

The Situation

In 1976, the U.S. Supreme Court struck down mandatory spending limits as an unconstitutional restriction on political speech. However, federal law limits the amount of money individuals and groups can contribute to a candidate and to the candidate's campaign committee for federal elective office. State law does not impose similar limits on state and local campaigns. California voters have enacted several campaign finance regulatory measures, starting with (1) the Political Reform Act of 1974, which created the Political Practicves Commission (FPPC); and (2) Proposition 112, the Ethics in Goverment Act, which created a constitutional ban on honoraria to legislators and requires the Legislature to enact laws that ban or strictly limit acceptance of gifts by legislators. Both state and federal laws require candidates to report contributions they spend and receive for their campaign.

The Proposal

Proposition 212 will:
  • limit an individual's contribution per candidate to $100 in local or legislative races, and to $200 in statewide races.
  • ban contributions from corporations, unions and political action committees (PACs).
  • allow multiple small-donor committees (Citizen Contribution Committees) to contribute to the same candidate.
  • impose mandatory spending limits on all races and allow for voluntary spending limits if the mandatory limits are ruled unconstitutional.
  • bans gifts and contributions from lobbyists and prohibits state tax deductions for lobbying expenses.
  • ban the transfer of funds between candidates.
  • require that 75 % of contributions come from within a candidate's district.
  • repeal laws that limit gifts and ban giving speaking fees (honoraria) to public officials and candidates.
  • repeals laws that ban or restrict giving speaking fees and gifts to local and state officeholders.
Fiscal effect: The Legislative Analyst estimates it will cost state and local governments up to $4 million annually to implement and enforce new campaign finance limitations; however, this will be more than offset by additional revenues of about $6 million annually because lobbying expenses would not be allowed as a tax deduction.

Supporters Say

  • Proposition 212 limits PAC and individual contributions to candidates to very low levels and limits out-of-district contributions.
  • small donors would be encouraged to participate in the political process by joining Citizen Contribution Committees (CCCs) to make larger joint contributions.
  • existing laws restricting gifts and honoraria are window dressing; repealing them would force the legislature to adopt tougher measures.
  • gifts and contributions from lobbyists would be prohibited and tax deductions for lobbyists would be banned.

Opponents Say

  • many provisions of Proposition 212 cover areas that have already been declared unconstitutional.
  • the small-donor provision creates an enormous loophole for special interest groups to make very large donations to candidates.
  • Proposition 212 repeals the Ethics in Government Act so unlimited cash payments, gifts, and free travel to elected officials would be allowed.
  • voting for both Proposition 212 and Proposition 208 will not ensure reform; even if Proposition 212 is ruled unconstitutional, it has a poison-pill provision intended to nullify Proposition 208.
(Analysis prepared by the League of Women Voters of California Education Fund.)

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Last updated: October 20, 1996
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